Portfolio Management

Our investment strategies are executed manually and not driven by Algorithms / Bots. We are experimenting with A.I. but we don't have the best experiences with trades relying 100% on a trading bot. As we like to use indicators / algorithmic manners to some extent, our preference still goes to manual trading. 

Now why is that?  Let's use a simple analogy for this:

Imagine we would try to replace a postman with a Robot; 

In the first case, it sounds like a great idea. 

However, circumstances are not always the same and they can vary at any time!

For example in an emergency;

• If a house is on fire, the Robot would just deliver it and consider it a successful delivery. 

• On the other hand, a "real" postman would NEVER  deliver it, he would rather call a firefighter as dropping the package there would be more detrimental than not delivering it at all!

This is why we must understand the circumstances of the current situation first!

The key takeaway here is that the financial markets are something that cannot be oversimplified. This is because market conditions can change overnight. Trading algorithms work to some extent, but only when the right conditions are met. This is why we should always manually observe and research the market first!

High influential news (such as COVID-19 or a banking crisis) can have an enormous impact on the financial markets, which is something that an algorithm cannot always foresee. 

That is why we like the following saying: 

"The markets can remain irrational longer than you can remain solvent."

In some conditions, the best move is just to wait until the market has been corrected and be more risk-averse, instead of adding more risk to a portfolio. This is why we prefer manual trading by experts instead of using fully automated systems.